A look at the day ahead in European and global markets |
|
|
By Ankur Banerjee, Asia Finance & Markets Breaking News Correspondent |
|
|
A handshake between Donald Trump and Xi Jinping, an expected hold on rates from the Bank of Japan and Federal Reserve Chair Jerome Powell's cautious tone are all that investors can think about ahead of another onslaught of European earnings. First things first, not a lot of details are out from the high-stakes meeting between the U.S. president and his China counterpart, but the optimistic tone struck by both will largely be welcomed by markets. |
|
|
Trump gives meeting high marks |
U.S. President Donald Trump and Chinese President Xi Jinping react as they hold a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, October 30, 2025. REUTERS/Evelyn Hockstein |
Trump said he had struck a deal to reduce tariffs on China in exchange for Beijing resuming U.S. soybean purchases, keeping rare earths exports flowing and cracking down on the illicit trade of fentanyl. We are yet to hear from China. Trump described his meeting with Xi as "amazing", saying that "on a scale of 1 to 10, the meeting with Xi was 12." Markets though didn't know what to believe, keeping stocks choppy so far. With a lot of excitement already priced in on Thursday, markets are awaiting more details of the agreement between the world's top two economies. Signs of easing trade tensions sent stocks across the globe towards record highs while Chinese stocks held near a decade high. |
|
|
Bank of Japan holds rates |
That sets us up for a busy European calendar, with earnings from carmaker Volkswagen, apparel maker Puma and a slew of French banks and inflation and economic data from the region due later in the day. The Bank of Japan held rates steady but repeated its pledge to continue increasing borrowing costs if the economy moves in line with its projections, shifting investor focus to the prospect of a hike as soon as December. The Fed cut rates as expected on Wednesday but the spotlight was on Powell, who said a policy divide within the U.S. central bank and a lack of federal government data may put another interest rate cut out of reach this year. |
Graphics are produced by Reuters. |
|
|
Key developments that could influence markets on Thursday: |
- Economic events: Germany inflation data for October; Q3 GDP data for euro zone, Germany and France
|
Graphics are produced by Reuters. |
|
|
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. |
|
|
Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you've engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions |
|
|
|
No comments:
Post a Comment